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Scrap ‘Google Tax’ and increase defence spending, Spanish minister told in Washington

UPDATED on Wednesday at 19h.

The US Treasury Department has issued a statement calling for Spain to increase its defence spending and scrap the so-called ‘Google Tax’, following ‘frank discussions’  between the Spanish Economy Minister, Carlos Cuerpo (main image), and the US Treasury Secretary, Scott Bessent, in Washington this week. 

Cuerpo had travelled to Washington on Tuesday for meetings with US officials, as the European Union pushes to secure an agreement on tariffs and avert escalating tensions.

His trip came on the heels of European Trade Commissioner Maros Sefcovic’s own visit to Washington a day earlier. Sefcovic was there to represent the EU in talks with the US in a bid to head off a potential trade war sparked by President Donald Trump’s imposition of hefty tariffs.

Cuerpo stressed that his visit was well aligned with Sefcovic’s mission to Washington, which, he said, has ‘the full and complete support’ of all 27 EU member states. The Spanish minister also met with World Bank President, Ajay Banga, and a number of American business leaders. The aim was to ‘strengthen’ economic ties between Spain and the US, he said.

His meeting with the US Treasury Secretary came after recent comments from Bessent that aligning with China would be like ‘cutting your own throat’ – and in a clear reference to Spanish Prime Minister Pedro Sánchez’s recent visit to China. ALSO READ: Spain leans towards China as EU is divided, with China keen on ‘unity & cooperation’.

‘During their talks [on Tuesday], Secretary Bessent emphasised the need for greater defence spending by Spain in the NATO context,’ the statement reads, adding that Bessent also ‘underlined the United States’ continued opposition to the digital services tax levied by Spain and other countries, as well as other non-tariff barriers’.

For his part, Cuerpo stated that the US wants to reach a negotiated agreement with the EU on tariff policy.

‘A clear message that Secretary Bessent has conveyed is that they want to reach an agreement with the main trading partners, including, of course, the European Union,’ the minister said.

Tensions have risen since Trump announced plans to introduce 20% tariffs on goods from the EU, a move that has prompted the European bloc to prepare retaliatory measures should talks fail to yield a resolution. ALSO READ: From motorbikes to beauty products: EU announces first tariffs to hit back at US.

For now, Trump has opted to delay the new tariff rates by 90 days, maintaining only the existing 10% baseline duty during this pause. ALSO READ: EU welcomes Trump’s 90-day pause in tariffs, as stock markets soar.

Spanish Prime Minister Pedro Sánchez has unveiled a €14.1 billion aid package, aimed at helping industries -such as olive oil and wine – weather the potential impact of the trade dispute. 

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